NorthEast Cheese

Cheese prices on the CME Group fell Tuesday with barrels decreasing $0.0075 to close at $1.7575, while blocks dropped $0.0150 to close at $1.8650. Barrel prices have declined $0.0125 in the last 2 trading sessions in light trading. Tuesday's decline in the block price prompted increased trading activity as 4 loads were sold. Weekly average prices for barrels and blocks increased again last week and advanced wholesale prices for cheddar blocks and Muenster by $0.0700. Process 5# sliced cheese increased $0.0250. Wholesale prices for Swiss cuts were unchanged. Milk production remains strong with steady volumes flowing to cheese vats, maintaining steady cheese production. With many cheese prices based on monthly or weekly averages, cheese demand and sales have been good as buyers try to stay ahead of anticipated price increases. Export interest for cheese remains good. The latest NASS Cold Storage report shows stocks of natural cheese in cold storage as of March 31, 2013 totaled 1,102.1 million pounds, up 3% compared to one month ago and 5% higher compared to one year ago. A majority of the holdings are in the form of American cheese (61.7%) totaling 680.2 million pounds, up 3% from one month ago and 4% higher than one year ago. The next highest natural cheese holdings in cold storage are in the form of Other Natural Cheese, (35.5%) totaling 391.4 million pounds, 4% more than one month ago and 7% more compared to one year ago. Swiss cheese accounts for 2.8% of holdings at 30.5 million pounds, up 1% from one month ago and 6% more than one year ago. A closer look at the cold storage report showed Eastern stocks of American type cheese totaled 95.3 million pounds, 5.2% more than last month and 1.3% more than March, 2012. Eastern stocks of Other cheese, which is primarily Italian type cheeses, totaled 27.3 million pounds, 5.2% more than last month and 23.9% more than March 2012. WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)